Note, even if insurance pays for all the damage your property suffers, you still lose.

Even with possible downturn in the near future, losing considerable value in a property like that is less likely.

If it is, you're losing money. 

That group usually loses money and should never come into any conversation about REI anyway.

I was thinking about maxing out my Roth IRA because I have some amount sitting in my regular checking account which is losing its value over time.

My concern is that right off, its losing money, but has good potential in my mind if I can retrain the tenants or swap them out.1 Quad, 1 Tri, 4 Dup, 1 SFPurchase price: 420,000 @ 4% interest with 2 year call (possible extension for another year).

So basically she has nothing to lose if she screws you over.

Will I care less if don’t live there?

If you go over that you lose the exclusion fully. 

I understand it is losing its value quickly due to current inflation.